I have amassed debts that I cannot pay and am being hounded by debt collection agencies. I do not want to go bankrupt, what can I do?

It is possible to avoid bankruptcy even if you do not have any tangible assets if you can show that you have a reasonable income stream. It may well be the case that an Individual Voluntary Arrangement would be appropriate whereby you would offer settlement proposals to your creditors using the income that you would otherwise use in paying loans/ credit cards. It is not always the case that full repayment is expected by your creditors.

What would happen to my house in the event that I am declared bankrupt? Is this the same if I make an Arrangement with my creditors?

The Official Receiver/Trustee may sell your house in order to pay your creditors. This may be the case even if your house is owned jointly with another or is mortgaged. If your spouse or children are living with you it is possible that a sale will not be effected until a year has elapsed after the bankruptcy commenced. This would give you time to make alternative arrangements. It is also possible for your spouse, friend or third party to purchase the Official Receiver's/ Trustee's interest in the property. The Official Receiver /Trustee will advise you of how much that party will need to pay.

Depending on the circumstances of the case, it is possible for an individual entering into a Voluntary Arrangement with his creditors to remain in his home for the duration of the Arrangement.

I have already been made bankrupt. Can I still enter into a Voluntary Arrangement?

It is possible to enter into a Voluntary Arrangement once a Bankruptcy Order has been made. Obtaining agreement to a Voluntary Arrangement is also a way by which you may obtain an Annulment of the Bankruptcy Order.

I am a sole trader. Can I continue in business and have a bank account if I am made bankrupt?

As a bankrupt you are allowed to earn a living. You are permitted to do so either as an employee, self-employed or by running a business. However, there are certain restrictions on how you may trade. You must not obtain credit for more than £250 without disclosing that you are a bankrupt; you must trade in the name by which you were judged bankrupt unless you disclose that name; as a bankrupt you may not be a director of a company. If you earn more money than is required for the reasonable domestic needs of your family you may have to pay a regular sum to help pay your creditors and/or discharge the costs of your bankruptcy.

It is up to the financial institutions themselves whether they grant you an account. You must disclose your status if applying for credit of £250 or more. They may seek to impose restrictions on the facilities offered e.g. not permitting the use of a guarantee card.

How much do you charge for assisting me?

Each case presents a different set of circumstances and potential problems and hence a different solution is required for each. It is important that you obtain professional advice on all options available to you and the relative benefits of each. Some procedures may be charged on a fixed fee basis whilst for others an hourly rate is more appropriate.

JWD Associates will meet with you initially FREE OF CHARGE and once the facts and requirements of your case are established will provide you with a clear indication of the costs involved.